Lowe's Companies, Inc. (LOW)

In the past six months, Lowe's stock has increased by 22.36%, with a 10.59% increase in the past month. Analyst ratings have been positive, with upgrades from Gordon Haskett and Barclays in January 2026. However, Lowe's projected a steeper drop in annual same-store sales due to inflation-hit consumers reducing spending on home improvement projects, leading to a trim in its annual earnings target in November 2023. Second-quarter fiscal year 2024 results showed softening DIY demand, although the professional segment and online sales demonstrated resilience and growth. Comparable sales declined by 5.1% year-over-year in Q2 2024. Similarly, in the first quarter of fiscal year 2025, comparable sales decreased by 1.7%, attributed to ongoing challenges in the housing market and a slower start to spring due to unfavorable weather.

Demand for Lowe's products and services exhibits seasonality, influenced by weather conditions and specific periods of the year. Seasonal goods account for a significant portion of the company's first-quarter sales, making it susceptible to unfavorable spring weather. Back-to-school spending can drive demand for home improvement projects, while the holiday season sees increased demand for appliances and decor. The home improvement sector's performance is generally tied to housing activity, consumer spending, interest rates, and seasonality.

Lowe's Companies, Inc. is a retail company specializing in home improvement, serving customers across North America. It operates in the retail trade sector, providing home improvement products, services, and solutions to DIY customers and professional contractors. Its product categories include lumber, building materials, hardware, appliances, tools, paint, flooring, seasonal and outdoor living products, kitchens and bath, décor, lighting, and electrical supplies. Lowe's aims to help customers create, maintain, and enjoy their homes through construction, maintenance, repair, remodeling, and decorating products.

Lowe's primarily operates a network of retail stores and maintains an online presence across the United States. It previously had operations in Canada and Mexico, but sold its Canadian operations in February 2023. In fiscal year 2024, the United States accounted for 100% of its total revenue. As of October 28, 2022, Lowe's and its related businesses operated 2,181 home improvement and hardware stores in North America.

Lowe's brand reputation has faced challenges in the past year, marked by a significant drop in customer traffic in 2024. This decline has been attributed to internal decisions and shifts in company strategy, including changes in the store labor model and a focus on cost control, leading to reduced staffing and a perceived decline in service quality. Customers reported longer waits, fewer options on shelves, and difficulty finding assistance. Online sentiment has reflected this shift, with a rise in negative feedback regarding service and checkout frustrations. The company's increasing prioritization of professional contractors over DIY customers has also contributed to a sense of neglect among the latter.

Approximately 68.57% to 79% of Lowe's stock is owned by institutional investors, including Vanguard Group Inc, BlackRock, Inc., JPMorgan Chase & Co, Fmr Llc, and State Street Corp. Public companies and individual investors hold about 31.33% of the stock, while insiders own less than 1%.